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ktjcpa

posts: 1

Nov 04, 2006 6:16 PM ET Quote Report Abuse

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Would it hurt my chances of obtaining funding if one of the persons on my managment team, who is also a % named owner of the company, has bad personal credit? If the answer is yes, would that answer change for the better if they were not a % named owner, but only on the managment team?

enlightDan

posts: 44

Nov 06, 2006 5:03 PM ET Quote Report Abuse

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A good VC / Lender will run a credit check on its client`s principals. It might not be a deal breaker, but it certainly won`t help your case.

I`m not so sure about the credit check on the team, but a good lender will do its due diligence to make sure they don`t expose themselves to risk.

-------------------------

Dan Pickett
Principal
Enlight Solutions, Inc.

www.enlightsolutions.com
www.twitter.com/dpickett

MNGrillGuy

posts: 236

Nov 06, 2006 5:07 PM ET Quote Report Abuse

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I`ve read in other posts that a bank requires each owner to collateralize 100% of the loan if it is a young company. So, while I think the credit is important, probably just as important is his/her ability to collateralize the loan.

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Travis Tschepen
Hibachi Bros. LLC

--My goal in life is to be as good of a person my dog already thinks I am.--

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